|Top-News of the Week:
Altona Mining is taken over from Copper Mountain for 0,17 AUD per share:
Klondex Mines reports positive production results from the 3rd quarter
Video: Altona Mining Talk On The Merger With Copper Mountain
Highlights of the Proposed Combination
• A multi-jurisdictional, mid-tier copper producer.
• Annual potential copper production of approximately 160 million pounds (73,000 tonnes) of copper by 2020 .
• Combined Proven and Probable Reserves of 2.1 billion pounds (0.92 million tonnes) of copper.
• Combined Measured and Indicated Resources over 4.1 billion pounds (1.8 million tonnes) of copper and an additional 3.6 billion pounds (1.5 million tonnes) of copper in Inferred Resources.
• One of the leading TSX/ASX listed copper production companies, with significant production growth and exploration potential in two tier one mining jurisdictions.
• The combined company will have approximately C$78 million in cash.
• Enhanced trading liquidity in both Canada (TSX) and Australia (ASX).
• Pro forma market cap of approximately C$300 million, with CMMC shareholders owning 71.5% and Altona shareholders owning 28.5% of the combined entity.
• The strength and complementary nature of Altona’s assets, management team, regional operating experience, and exploration expertise gives CMMC a stronger platform to grow.
• CMMC’s construction and operational experience are well positioned to bring Cloncurry into production.
• Offer represents a 41.7% premium to Altona’s price of A$0.12 per share, being the closing price on the day prior to the execution of the MID.
• Major Altona shareholder (Matchpoint) has indicated support for the Scheme.
Klondex Mines announces high-grade drill-results from Fire Creek
A couple of days ago, Klondex Mines reported its operational and financial results for the third quarter of 2017.
The Company mined a total of 54,172 gold equivalent ounces ("GEOs"), in line with management’s expectations. The Company produced a total of 40,819 GEOs. Total sales for the third quarter were 38,012 GEOs, consisting of 35,477 gold ounces and 189,904 silver ounces. Production cash costs per GEO sold were US$809 for the third quarter and US$727 year-to-date.
Based on year-to-date results and the Company's current forecast for 2017, total annual production guidance of 213,000 - 230,000 GEOs remains unchanged. This projection now consists of 178,000 - 185,000 GEOs produced from Nevada operations. The Company is widening its annual production guidance range for Canadian operations by 6,000 ounces to 35,000 - 45,000 GEOs. In addition, the Company is reiterating consolidated guidance for production cash costs per GEO sold of US$675 - US$700.
The company reported a loss of nearly CA$13.4 million for the third quarter, which mainly comes from depreciation and depletion, write-downs and foreign currency losses.
Certainly, the company has high-liquid metal inventories, counting around CA$40 million. Those should be mostly changed into cash in the fourth quarter, which should lead to a much better result. Furthermore, Klondex was able to raise the recovery rate at Hollister from 60% to 90%, which will also result in much better numbers in the fourth quarter. In addition, Klondex always speaks about all-in-costs in its quarterly numbers. These seem to be relatively high, which causes in the fact, that those include development costs. The more common all-in-sustaining costs lie around US$200 per ounce deeper, which results in around US$950 to 1,000 per ounce, which is a respectable level.
One factor of uncertainty are the current short positions on the Klondex stock. Short sellers may aim to prevent Klondex to stay in the important GDX index. Therefore, they are selling the stock, trying to get it below a market cap of around US$450 million. Should this can be prevented, Klondex may show another big upward move by announcing the Q4 numbers, latest.
News: Klondex Reports Third Quarter 2017 Financial Results; Reiterates Full-Year Total Company Production Guidance of 213,000 - 230,000 GEOs at Production Cash Cost of $675 - $700 per GEO Sold
A short time ago, Klondex Mines provided an update on the 2017 surface and underground exploration drill programs at its Fire Creek Mine located in northern Nevada, USA. Thereby, the company announced a couple of high-grade drill results.
Surface Exploration Drilling Highlights were:
- FCC-0092: 1.27 opt Au over 14.0 ft, or 43.69 g/t over 4.3 m - Zeus (formerly identified as the West Zone)
- Including 8.25 opt Au over 1.7 ft, or 282.93 g/t over 0.5 m and 0.58 opt Au over 1.9 ft, or 19.71 g/t over 0.6 m
- FCC-0093: 2.03 opt Au over 2.0 ft, or 69.43 g/t over 0.6 m - Zeus and 0.18 opt Au over 15.7 ft, or 6.08 g/t over 4.8 m
Underground Drilling Highlights were:
- FCU-0796: 9.96 opt AuEq over 0.8 ft, or 341.35 g/t over 0.2 m - Karen
- FCU-0901: 2.56 opt AuEq over 1.9 ft, or 87.78 g/t over 0.6 m - Joyce and 4.88 opt AuEq over 1.3 ft, or 167.25 g/t over 0.4 m - Honeyrunner
- FCU-0913: 4.73 opt AuEq over 1.4 ft, or 162.05 g/t over 0.4 m - Joyce
- FCU-0900: 2.18 opt AuEq over 3.2 ft, or 74.79 g/t over 1.0 m - Vein 18
- FCU-0902: 2.13 opt AuEq over 1.0 ft, or 73.13 g/t over 0.3 m - Joyce
- FCU-0916: 2.01 opt AuEq over 1.0 ft, or 68.96 g/t over 0.3 m - Joyce
These results demonstrate that the potential for high grade mineralization, similar to what is currently being mined at Fire Creek, exists within the Zeus structure about 4,000 feet northwest from the current underground development.
News: Klondex Provides Exploration Update at Fire Creek
Uranium: spot price is gaining momentum!
After the sensational bang a couple of days ago, as Cameco announced to temporarily shut-down the McArthur River Mine, the uranium spot price is still rising. It recently closed at around US$25 per pound, which marked an 8-week-high! A fact, that provides hope for more, because at least the spot price applies as a kind of early indicator, especially for the uranium stocks. When the prices begin to climb, the producers, which can place a significant uranium production on the market will benefit. It is good to know in this context that only a relatively small amount of the annual uranium production is traded at the spot market. The main portion of the uranium production is processed within long-term delivery contracts at a predetermined (forward) price. While this demand for uranium is fairly steady and predictable, the procurement decisions of utilities can vary based on contract coverage, inventories, forecasts of future prices and risk tolerance. The previous contracting cycle, brought on by uranium price spikes in 2007 and 2010, resulted in utilities rushing to contract at higher prices and for very long terms. While these old contracts are expiring, the utilities have not been moving to replace these supplies. As a result, the forward coverage of utilities has fallen appreciably, increasing the uncommitted requirements that will need future contract coverage. These unfilled needs (under recently revised conservative estimates) currently total around 742 million pounds over the next 10 years, which is higher than the 705 million pounds of uncommitted demand existing in 2011. In a thinly traded commodity, like uranium, this return to more normal long term contracting levels should put considerable upward pressure on long term and spot prices. We are beginning to see the signs of this increased buying activity by global utilities which is very encouraging.
This should strengthen the development of the uranium spot price even more and lead to a heavy upward spiral.
All relevant information about the uranium sector including several interesting uranium companies can be found in the new SRC Uranium Report at the following link: All new Reports 2018 by SRC
Video: Uranium Energy: Well Positioned For Next Hike In Uranium Price
New gold star on the rise?!: Maple Gold Mines
TerraX Minerals reports drastic expansion of Duck Lake
A large, mainly un-explored gold project in one of the best gold regions world-wide and thereby in a strong focus of the really large gold companies…that doesn’t exist anymore. It does, but it is really the last project!
Maple Gold Mines is a well-funded gold exploration company focused on advancing one of the largest undeveloped gold projects in Quebec. The Company’s district-scale 370 km² Douay Gold Project is located along a 55km segment of the Casa Berardi Deformation Zone within the prolific Abitibi Greenstone Belt in northern Quebec. The Project hosts a multi-million-ounce gold deposit that remains open in several directions, with excellent infrastructure and several large-scale operating mines within 150 km. The Douay Gold Project’s high-grade gold lenses have never been mined, the Project is virtually royalty free, and the Company has aggressive property-wide exploration and drilling plans to continue making new discoveries and building high-quality ounces in one of the best mining jurisdictions in the world.
More information on Maple Gold Mines still to come.
Video: Aurvista Gold/Maple Gold Mines: Strong Management To Increase Resource Estimate Of 2.8m Oz Gold
News: Aurvista Gold Corporation Receives Approval for Name Change to Maple Gold Mines Ltd. and Announces Results of Special Meeting
Sibanye-Stillwater announces resource estimate for Stillwater Mines
A short time ago, TerraX Minerals reported follow-up surface sampling results from the Duck Lake structure, one of 8 new high-grade target areas identified on the Yellowknife City Gold Project during field work this summer.
Further prospecting and mapping programs by TerraX have extended the gold mineralization associated with these structures two kilometers south of the original Duck Lake discovery into the main granite intrusive areas and three kilometers east into a narrow neck of granite intrusion.
The summer/fall field program at Yellowknife City Gold has been extremely successful, identifying 8 new target areas with significant potential for additional high-grade gold discoveries in the near future. Newly identified targets, such as Angel, Burwash, Anton, Ryan Lake and Duck Lake, provide the company with further opportunities for new high-grade gold discoveries on a district scale at Yellowknife City Gold.
News: TerraX extends the Duck Lake mineralized zone 3 km east and 2 km to the south with outcrop and channel sampling.
Endeavour Silver discovers new open-pitable silver mineralization
A couple of days ago, Sibanye Stillwater announced a PGM Mineral Resource of 80.8 Million 2E ounces at a grade of 16.8g/t that has been declared for the first time for the US PGM assets under the SAMREC Code. The Mineral Resource comprises 49.4 Million 2E ounces at a grade of 16.6g/t in the Inferred category and 31.3 Million 2E ounces at a grade of 17.0g/t in the Measured and Indicated categories. PGM Mineral Reserves of 22.2 Million 2E ounces at a head grade of 16.3g/t have been declared, a 5% increase from those declared by the Stillwater Mining Company in 2016. Mineral Reserve grades have remained consistent year-on-year, reaffirming the quality of the US PGM assets acquired by Sibanye-Stillwater in May 2017.
Therewith, the outcome of the CPR confirms the value accretive nature of the transaction and the company’s decision to purchase Stillwater.
News: Sibanye-Stillwater releases Competent Person’s Report on its US PGM assets
MAG Silver announces US$48 Million Private Placement
A few days ago, Endeavour Silver announced that exploration drilling on the Parral property in Chihuahua State, Mexico has discovered potential bulk tonnage silver mineralization within the Palmilla-Capuzaya-La Luz veins in the Palmilla mine area.
Drilling highlights included 11.1 m (36.4 feet (ft)) true width grading 154 grams per ton (gpt) silver, 0.36 gpt gold, 0.07% lead and 0.23% zinc (179 gpt silver equivalent (AgEq) or 5.8 oz per ton (opt) AgEq) in hole PAL-02. Other highlights include two intercepts of 11.0 m (36.1 ft) assaying 118 gpt silver, 0.60 gpt gold, 0.15% lead and 0.22% zinc (160 gpt AgEq or 5.1 opt AgEq) and 15.1 m (49.5 ft) running 114 gpt silver, 0.2 gpt gold, 0.22% lead and 0.33% zinc (128 gpt AgEq or 4.1 opt AgEq) in hole PAL-13.
The discovery of potential bulk tonnage silver-gold-lead-zinc mineralization in the Palmilla mine area, that may be amenable to open pit mining, is an exciting new development for the Parral district in general and Endeavour Silver’s property in particular.
A new resource estimate is planned for early 2018.
News: Endeavour Silver Drilling Discovers Potential Bulk Tonnage Silver Mineralization in the Palmilla Mine Area, Parral Project, Chihuahua, Mexico
Video: Endeavour Silver CEO Bradford Cooke Presentation at the Precious Metals Summit Zurich
A short time ago, MAG Silver announced that it will undertake with some existing shareholders, a non-brokered private placement offering of up to 4,202,483 common shares of MAG at a price of US$10.47 per Common Share for maximum gross proceeds of US$43,999,997. Meanwhile, the company raised this private placement to US$48,158,241.
MAG Silver intends to use the net proceeds of the Offering to fund exploration and development of the Juanicipio Project and for working capital and general corporate purposes.
This financing greatly shows, that MAG Silver still has a big support from its shareholders, which await a higher share-price in the near future.
News: MAG Silver Announces up to US$44 Million Private Placement
Video: MAG Silver: New PEA Based On Substantially Increased Juanicipio Mineral Resource
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